tag:blogger.com,1999:blog-6318055043707993918.post4584084044777754741..comments2015-03-03T00:25:55.735-05:00Comments on THE WANDERING TAX PRO: THE NEW TAX CODE - INTEREST AND TAXESRobert D Flachhttp://www.blogger.com/profile/06034127763662917220noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-6318055043707993918.post-26388881357604910082012-01-05T00:16:11.444-05:002012-01-05T00:16:11.444-05:00Interesting reading...thanks for your site. I do ...Interesting reading...thanks for your site. I do disagree with allowing deduction of mortgage interest because the lower tax revenues would require a higher tax rate to offset it. Thus someone who has a big mortgage is rewarded at the expense of those who have bought a less expensive home and paid it off. <br /><br />If couple A put down $30k(5%) on a $600k house and have a big $570k mortgage for 30 years, and couple B lives more frugally and saves more and then puts down $60k(20%) on a $300k house and have a $240k mortgage for 15 years and then make extra payments and pay off their house in seven years, everyone, including couple B, pay a higher income tax rate to give couple A their mortgage deduction for 30 years. <br /><br />Renters saving up to buy a home likewise subsidize the folks with the big mortgage. <br /><br />Why should we use the tax code to reward those who take on big debt?Steve Viseknoreply@blogger.comtag:blogger.com,1999:blog-6318055043707993918.post-21907593048725885462011-07-04T15:13:03.790-04:002011-07-04T15:13:03.790-04:00All good points. Thanks for linking this to my rec...All good points. Thanks for linking this to my recent post about the mortgage interest deduction (http://21stcenturytaxation.blogspot.com/2011/07/mortgage-interest-deduction-is-subsidy.html). I think if more people understood how the current mortgage interest deduction worked, they would also push for reform (such as to only allow a deduction for debt on a principal residence; or perhaps a credit instead).<br /><br />So far as a tax deduction, arguably, it is justified to prevent a tax on a tax and to reflect that the money used to pay state taxes is not available to pay federal taxes. For more on that see - http://www.cpa2biz.com/Content/media/PRODUCER_CONTENT/Newsletters/Articles_2008/Tax/goodbye.jsp. AMT reform though, might lead to a reduction or loss of the state tax deduction. That would not be the way to go. Reduction or elimination of other deductions and credits would likely make more sense (for example the duplicative child credit and dependency exemption could be reformed).Professor Nellenhttp://www.blogger.com/profile/03288632402197167948noreply@blogger.comtag:blogger.com,1999:blog-6318055043707993918.post-82792441128602058192011-07-01T09:12:16.867-04:002011-07-01T09:12:16.867-04:00dbltll-
Sorry for the above FU. Let&#39;s try ag...dbltll-<br /><br />Sorry for the above FU. Let&#39;s try again.<br /><br />Thanks for the kind words.<br /><br />&quot;Sunsetting&quot; wouldn&#39;t work. The idiots in Congress had ten (10) years to fix the Tax Code, but did nothing but sit on their arses.<br /><br />As for running for Congress - somehow I do not think I would fit in. For one thing, I am not an idiot.<br /><br />Thanks again!<br /><br />TWTPRobert D Flachhttp://www.blogger.com/profile/06034127763662917220noreply@blogger.comtag:blogger.com,1999:blog-6318055043707993918.post-79314763508848730322011-07-01T09:09:41.320-04:002011-07-01T09:09:41.320-04:00This comment has been removed by the author.Robert D Flachhttp://www.blogger.com/profile/06034127763662917220noreply@blogger.comtag:blogger.com,1999:blog-6318055043707993918.post-30875614576736403932011-06-29T23:54:54.292-04:002011-06-29T23:54:54.292-04:00Could you run for Congress? Or get on a tax reform...Could you run for Congress? Or get on a tax reform committee? Because this is more sensible than anything I&#39;ve ever seen Congress do to the tax code.<br /><br />All I can think of is to have all laws sunset automatically after 10 years or so, to make them spend their time reviewing the laws we&#39;ve already got instead of constantly making up new stuff.dbltallhttp://www.blogger.com/profile/07444309533366015856noreply@blogger.com